The Institute for Ethics and Economic Policy (IEEP)

 

Fordham University is a renowned Jesuit institution with a 165-year history of emphasis on ethics.

 

To promote Governance with Respect Ethics Accountability and Transparency (GREAT)

 

BANGLADESH

 

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Transparency International’s corruption rank for this country in 2000 is absent and means that international investment is discouraged by excessive corruption. The 2001 report ranks Bangladesh as the most corrupt country in the world with a rank of 91 and corruption perception index of only 0.4.  However, this number is subject to large variance, and Bangladesh may not be the most corrupt.

 

WORLD BANK´S TOP MAN REQUESTS IMMUNITY. Bangladesh will receive the visit of Shengman Zhang, Managing Director of WB, who wants to press the government so that a law of institutional immunity for the Bank will be approved by the parliament. Banglasesh needs WB financing, and therefore the WB can also pressure the country to adopt some reforms that he considers necessary. This legal immunity would avoid the continuous demands against the Bank for lack of transparency and corruption. (The Independent, January 10, 2005, summary by Andres Macias).

 

INDEPENDENT JUDICIAL COMMISSION TO FIGHT CORRUPTION. After being named as the most corrupted country for 4 years in Transparency International’s surveys, Bangladesh now sets up a three member anti-corruption commission, which is headed by a former High Court judge. Despite skeptical attitude about its impartiality by opposition political parties, foreign donors and investors generally welcome the decision. (BBC News, November 25, 2004, summary by Cecilia Kwok Ying Lam).

 

Travel business ´tainted with corruption. According to officials the travel business is tainted with different kinds of corruption committed by a number of travel and airlines agents. Among the means of corruption that takes place false booking, forgery of passport and visa and misappropriation of money are the main problem. (News from Bangladesh, August 30, 2004, summary by Sherldine Tomlinson).

 

Bangladesh Social Welfare Ministry fails to reduce corruption by 1 per cent. According to critics, Social Welfare Minister Ali Ahsan Mohmmad Mujahid has failed to reduce corruption.  Despite the criticism Mujahid said that he has suspended about 32 officers in different offices and departments under the ministry for their involvement in corruption. (BBC Monitoring Service 03 Jun 2004 summary by Sherldine Tomlinson).

 

Corruption elbows out Bangladesh from new US assistance plan. Bangladesh has failed to qualify for a one-billion-US-dollar Millennium Challenge Assistance plan of the United States for the current year because of chronic corruption. The Board of Directors of the Millennium Challenge Corporation, which was created by the US government to administer the assistance plan. (News from Bangladesh, May 10 2004, summary by Sherldine Tomlinson).

 

Independent Anti-Corruption Commission Bill likely to be passed in next Jatiya Sangsad session. It was reported that the Independent Anti-Corruption Commission Bill 2003 may be passed in parliament. The ACC Bill passing was confirmed during a  meeting at the office of the finance Minister. In the meeting members also decided to withdraw the earlier provision of the proposed bill that said that the members of the Commission would be selected by a 6-member committee that also includes the Finance and Law ministers. (The Independent Bangladesh 16 Dec 2003 summary by Sherldine Tomlinson).

 

Anomalies, corruption rule Nalitabari health complex. A report of the Transparency International, Bangladesh found serious irregularities, corruption and mismanagement at Nalitabari Upazila Health Complex in Sherpur district. It said that the pregnant women have to pay money for treatment while giving birth at the health complex. Patients are also forced to pay for minor operation while there is no operation theatre for major surgery. (The Daily Star 21 Nov 2003 summary by Sherldine Tomlinson).

 

Nation is in grip of corruption. The Chairman of the Jatiya Party have that said the nation is in the grip of bribe, corruption and price hike when people are suffering from insecurity because of deterioration of law and order. He also said the ruling party failed to fulfil any of its commitments it made during the election. On assuming power BNP indulged in irregularities, corruption and politicisation of the administration. (The Independent, November 11, 2003, summary by Sherldine Tomlinson).

 

TIB MAKES ONE AWARE OF CORRUPTION In a bid to create corruption awareness and its evil effects on Bangladesh society, Transparency International of Bangladesh (TIB) in collaboration with the theater team of Shacheton Nagorik Committee of Nalitabari in Sherpur held three shows of a "street drama" on anti corruption at three different public places in the northern city of Rajshahi. The shows were a part of TIB aim to work against the ill practice for a better Bangladesh. (Daily Star, 28 Oct 2003, summary by Hanh Vu).

 

REB corruption.  It was reported that the Rural Electrification Board entrusted with providing electricity at a reasonable rate to the rural populace, has become a hotbed of corruption. According the report, directors of the Palli Bidyut Samities are extorting money from the poor rural people by assuring them about giving electricity connection promptly. The report said that taking advantage of the ignorance of the people is money making scheme for the board. The reports further alleged that whenever an applicant approaches the board they make many reasons such as lack of adequate equipment or they cannot carry the load. The Rural Electrification Board has denied any wrong doing. (The Independent, October 29, 2003 summary by Sherldine Tomlinson).

 

DIRTY MONEY LAW ‘FAILS’ New laws on financial management introduced in 2002, which is doubled the sentence for money laundering for 4 years in jail and provided for special courts to hear cases within a month of arrest, seemed not block money laundering in Bangladesh, revealed Bangladesh Economic Association (BEA). According to BEA’s report, more than 20% of the laundered funds were the proceeds of undocumented remittances from overseas, with the proceeds of bribery contributing about 7% of the total. (BBC, 06 Oct 2003, summarized by Hanh Vu).

 

TIB – CORRUPTION According to Transparency International Bangladesh (TIB), of 874 corruption-related reports published in 21 newspapers mentioning 1,105 corruption incidents, there were only 216 of the reports mentioning the amounts of financial loses inflicted to the government which was around Tk 575 crore during the January-June period this year. Lawful action was taken in only 31.2% of the cases against the corrupt, said TIB report. TIB corruption database shows corruption in financial sector as 37.3%; police 22.4% in terms of number of corruption incidents, 12.9% in education sector and 10.1% in local government. In 35.9 percent cases government officials and employees were found indulged in corruption-through misuse of power in the first place and taking bribe on the second-highest count of corruption. TIB also suggested some measures to iron out the ill-practices namely appointment of ombudsmen, speedy trial of corrupt people, press freedom, separation of the judiciary and administrative reforms. (United News of Bangladesh, 29 Sep 2003, summarized by Hanh Vu).

 

Bank officials, garment owners face corruption charges. The Bureau of Anti-Corruption filed 15 cases against two businessmen and three officials of Uttara Bank on charges of embezzlement. BAC inspector Harunur Rashid filed the cases alleging that all the accused embezzled in connivance with each other during the period from June 6, 2001 to December 12, 2002, violating rules and regulations for granting loans. (The Independent, August 6, 2003, summary by Sherldine Tomlinson).

 

CORRUPT FORMER BANGLADESHI PM GRANTED REFUGEE STATUS. The former prime minister Kazi Zafar Ahmed of Bangladesh has been granted refugee status in Australia where Prime Minister John Howard said he will look into the matter. But, a spokesman for Immigration Minister Philip Ruddock said that a criminal record may not preclude refugee status. "On the face of it," he said, "it seems a puzzling decision but there may be a proper explanation to be fair to the people who made it." He also said the Mr. Ruddock would make further inquiries. (ABC (AP), June 13, 2003, www.abc.net.au. Summary by Janet Hudgins).

 

Irregularities in construction work of a project alleged. According to reports, the government have allocated 190 tonnes of rice under the Local Government Engineering Department, for the construction of the bank of Nilsagar. Accordingly, two project committees were formed with two Union Parishad members as the chairmen of the committees. Local people alleged that low quality bricks, cement and rods had been used in the construction work of the project and a big amount of money from the allocation has been embezzled. They have urged the authorities concerned to investigate into the matter immediately. (The Independent, June 13, 2003, summary by Sherldine Tomlinson).

 

Bangladesh tackles corruption. The Bangladeshi Government has announced plans to set up an independent anti-corruption commission. Corruption has been recorded at the highest levels of government. The government says the new authority will be able to help launch impartial inquiries into allegations of corruption against anyone that include government ministers. Bangladesh has been listed as one of the world’s most corrupt countries by an independent monitoring group. Bangladesh already has a bureau of anti-corruption, but it is widely regarded as toothless and not genuinely impartial.  (BBC News May 13, 2003, summary by Sherldine Tomlinson).

 

CORRUPTION COST BANGLADESH 745 MILLION DOLLARS IN 2002. According to Transparency International, Bangladesh (TIB), a regional affiliate of the Berlin-based corruption watchdog Transparency International (TI), corruption cost Bangladesh 44 billion taka (745 million dollars) in 2002. This amount represents 10.38 percent of the Bangladesh's total annual budget and 67 percent of the foreign aid received in the last the fiscal year. These estimations were based on 2,778 graft cases that were reported in the newspapers. According to the TIB, the police are heading a list of professional groups involved in graft. TIB urged for the establishment of an anti-corruption commission, for freedom of the press and for separation of the judiciary from the executive. (Agence France Presse, April 1, 2003, summary by Pavlidis George).

 

Hasina faces corruption trial. Bangladesh’s former Prime Minister Sheikh Hasina Wajed and six other officials were charged with corruption in the purchase of Russian-made MiG-29 fighters. The government Bureau of Anti-Corruption (BAC) formally submitted the charge-sheet accusing the seven of colluding to purchase eight fighter bombers in 1999, over alleged defence objections. The purchase caused a loss of millions of dollars. (Gulf Daily News, January 31, 2003 summary by Sherldine Tomlinson).

 

Corruption, judicial delays holding up Bangladesh According to a poll, corruption in the police and delays in the courts are what troubles Bangladeshis the most, a World Bank-commissioned. Bangladeshis believe that improving governance is critical for reducing poverty. In response to police reform, the World Bank suggests that measures include reviewing and redressing pay, allowances, job security, stopping politically motivated transfers of police officials, taking action against officers found guilty of corruption and other crimes besides instituting civilian oversight of police services. (The Hindu, January 9, 2003, summary by Sherldine Tomlinson).

 

POLICE MOST CORRUPT, LOWER COURTS NEXT, TIB REPORT REVEALS A household survey conducted by the Transparency International, Bangladesh (TIB) among 3,030 Bangladeshis between November 2001 and May 2002 found that police, lower judiciary and land administration leading the corruption sectors with 84%; 75% and 73% of respondents said they have to pay bribes to officials working in the fields; followed are the Healthcare, education and taxation services with 55.53 per cent, 39.73 per cent, 32 per cent and 19.25 per cent respectively. The survey commissioned by the national chapters of the TI and used same methodology to assess service delivery and corruption, was conducted in five South Asian countries - Bangladesh, India, Nepal, Pakistan and Sri Lanka.  (The Daily Star 18 Dec 2002, summary by Hanh Vu).

 

Corruption, poor infrastructure repelling INVESTMENT . Corruption, bureaucratic bottlenecks, deteriorating law and order, poor infrastructure and lack of consistency in and implementation of policies stand in the way of investment in Bangladesh. This was observed by the speakers at a roundtable held in the city.  One speaker said that the government should not only concentrate on promotional measures, but on removal of obstacles with a view to attracting considerable investment in the country. (Independent Bangladesh, October 17, 2002, summary by Sherldine Tomlinson).

 

call for ´citizens´ anti-corruption´ watchdog. Bangladeshis, red-faced after being named the world’s most corrupt nation for the second consecutive year, have called for the establishment of a citizen’s anti-corruption watchdog. The call was made at a meeting here of the country’s leading economists, who railed against the rampant corruption in the South Asian state. Ahmed, who is the head of the Bangladesh chapter of Berlin-based Transparency International, said he wondered how from only two billionaires in Bangladesh in 1972, the number has now shot up to 22,000. H K Dey, an economist with Chittagong University, said corruption in Bangladesh had spread to all sectors, from the exploration of minerals, oil and gas, to major weapons deals, administrative changes and large public purchases.  (The Economic Times, September 23, 2002 summary by Sherldine Tomlinson).

 

CHARGES PRESSED AGAINST TOFAIL, 7 OTHERS IN GRAFT CASE It's reported that eight persons including Awamin League leader Tofair Ahmed, Managing Director of Medona Advertising Ltd. Harun-ar-Rashid, its chief accountant Anwarul Islam, Tofail Ahmed's relatives Mosharraf Hossain, Enamul Hoq Arju, Hamidul Mollah, Kamrul Hasan Milon, Iftarul Hasan and A Momin Tulu had been charged in a graft case filed with Motijheel thana on June 17. Bureau of Anti-corruption (BAC) inspectors, yesterday,  in the charge sheet said that Tofail Ahmed while as the industries minister illegally earned a huge amount of money. To avert any possible confiscation of those money by the government he transferred Taka 6,32,95,000 to Bhola by fraudulent means and later he drew the money in collusion with some of his relatives, it added. (The Daily Star, 05 Sep 2002, summary by Hanh Vu).

 

53 CASES AGAINST HASINA & OTHER AWAMI LEAGUE LEADERS. The Bureau of Anti-Corruption (BAC) has filed 53 cases against former Prime Minister Sheikh Hasina, her cabinet colleagues and other prominent Awami League leaders on charges of embezzlement and causing loss of about Taka 2500 crore. Following detailed investigations, the BAC submitted charge sheets in 18 cases, which are now under trial before different courts. Those facing charges of corruption include ex-Prime Minister Sheikh Hasina, ex-Home Minister Mohammad Nasim and ex-Food Minister Amir Hossain Amu. It is learnt that another 10 to 15 more charge- sheets will be submitted soon in corruption cases filed against Sheikh Hasina, Amir Hossain Amu and ex-Industries Minister Tofail Ahmed.  (Source: The Independent, Internet Edition, Issue – 1658, Dhaka, Bangladesh, August 9, 2002,   Summary By: Shatarupa Chaki).

 

WORLD BANK AID TO FIGHT GRAFT, INCREASE EFFICIENCY. It was reported that Bangladesh would receive a credit of 4.5 million US dollars from the World Bank under an agreement signed between the two sides to help reduce corruption and increase efficiency in the public procurement of goods, works and services in the country. Secretary of External Relations Division Anisul Huq Chowdhury and World Bank Country Director Frederick T Temple signed the agreement. A World Bank press release has said that the credit will help finance a public procurement reform project aimed at reforming predicament capacity, adopting appeal procedures and implementing mandatory procurement audits and other accountability mechanisms. In addition, the interest-free credit is being provided by the World Bank Group's International Development Association, on standard terms, with a maturity of 40 years, including, a grace period of 10 years. (The Daily Star, June 14, 2002, summary by Sherldine Tomlinson).

 

‘BAD TIME AHEAD’. At the Bangladesh Aid Meeting in Paris, international donors urged for economic reforms and made few offers of aid. Finance minister of Bangladesh, Saifur Rahman, has prepared a package of measures to fight corruption and improve tax collection. Since Bangladesh faces “a bad time”, it must rely on its own resources to develop the economy. In this context, the wastage by the public sector, which costs Bangladesh $1.38bn a year, is one of the most serious problems. (BBC News, April 29, 2002, summary by Pavlidis George).

 

OPPOSITION BLASTS "CORRUPT AND REPRESSIVE" GOVERNMENT. Bangladesh's main opposition leader Sheikh Hasina Wajed had called for public protest against the government of Prime Minister Khaleda Zia, which she branded as "most corrupt and repressive."  During a downtown party rally, the former prime minister expressed her displeasure over Zia and her Islamist allies due to the alleged arrest and harassment of her party leaders and supporters since Zia's Bangladesh Nationalist Party (BNP)-led government unseated Sheikh Hasina's ruling Awami League in October general elections. The said rally was attended by party activitists and supporters who are protesting against new laws and commence an anti-government campaign prior to municipal polls at the capital Dhaka and two other cities on April 25. Among the laws being criticized by Awami League supporters are the scrapping of a  law mandating the display of portraits of the country's founder Sheikh Mujibur Rahman -- Sheikh Hasina's father -- in all public buildings, and a government bill that will speed up criminal trials, which they alleged as a way to destroy the opposition. (Agence France Presse, April 20, 2002, summary by Eliza Villarino).

 

MINISTER DENIES INTERFERING IN A DANISH AID PROJECT. Bangladesh's Shipping Minister Akbar Hossain, who was accused of corruption by visiting Danish Foreign Ministry undersecretary Peter Lysholt Hansen, has denied that he improperly interefered  with a 16-million-dollar aid project to be used for repairs of four river ferries. He called Hansen's statements a "violation of diplomatic etiquette." The country's Foreign Ministry stated that it has already summoned Danish Ambassador Niels Severin Munk to lodge its protest for the perceived lack of courtesy of Hansen. (AP Worldstream, April 16, 2002, summary by Eliza Villarino).

 

DENMARK WITHDRAWS BANGLADESHI AID DUE TO CORRUPTION. Due to corruption, Denmark is set to cancel the 45-million-dollar aid allotted for Bangladesh's shipping industry. The country's undersecretary for foreign affairs Peter Lysbolt Hansen stated that corruption was intentional and goes up to the highest level of office, particularly that of the prime minister.  He said that despite promises to wipe out corruption, hardly any action on this problem was undertaken since the government under Bangladesh Prime Minister Khaleda Zia took over six months ago. He also cited that the Bangladeshi government urged the European country to reconsider its aid pullout, but the Danish government decided to push through with the plan due to its obligation to the Danish taxpayers. He also warned that the Danish government will reassess its cooperation in other sectors within the Asian country and urged the latter to improve its governance. (Agence France Presse, April 13, 2002, summary by Eliza Villarino).

 

BANGLADESHI NEWSPAPER EDITOR ARRESTED. An editor of a regional newspaper in Bangladesh has been arrested by local officials following the publication of stories on local government graft.  The 48-year old  Shakhawat Ibn Moyen Chowdhury, editor of the western Kushtia district's publication, Dainik Shickol, was sued by a local official named Musumur Rahman due to publication of what he termed as "baseless" stories that damaged his image. Previously, the French group, Reporters Sans Frontieres (RSF), urged the country to halt the threats and attacks against journalists. The head of RSF’s Asia-Pacific desk, Vincent Brossel, has stated that many journalists, particularly working outside the capital of Dhaka, were under pressure from underground groups, political parties and local authorities. (Bangladesh Agence France Presse, April 5, 2002, summary by Eliza J. Villarino).

 

ANTI-CORRUPTION COMMISSION TO BE FORMED, SAYS MOUDUD. Law, Justice and Parliamentary Affairs Minister Barrister Moudud Ahmed announced that the government of Bangladesh would establish an independent anti-corruption commission. According to the Law Minister, the government is committed to establishing a human rights commission and appointing an ombudsman to ensure transparency, accountability and good governance in society. (The Independent -Bangladesh, January 22, 2002, summary by Pavlidis George).

 

GOOD GOVERNANCE A MUST FOR UPLIFT, SAYS MINISTER    M. Saifur Rahman, Finance and Planning Minister, stated sustainable development may be ensured by curbing corruption, ensuring transparency, poverty reduction, and maintaining law and order.  The lack of social cohesion has caused the World Bank to emphasize structural adjustments and poverty reduction, and it was agreed that equity and good governance policies were key to the process.  An independent anti-corruption commission would encourage foreign investment.  As well, further investment in education is required, law and order must be maintained, and free and fair elections to ensure continuity of government are necessary for poverty reduction.  (The Independent Bangladesh, Jan. 17, 2002, summary by Marg Reynolds).

 

`White paper` on corruption  The first phase of a ´white paper´ on ´corruption´ during the five-year term of the previous Awami League government is likely to be published on January 26, which marks 100 days of the present government. A cell, headed by former secretary Mohammed Moniruzzaman at the prime minister´s office, is preparing the white paper on the basis of files and documents of different ministries, divisions, departments and directors, sources said. In her address to the nation last October 19, Prime Minister Khaleda Zia had declared that a white paper on corruption during the Awami League rule would be published within 100 days. "Preparation of the first phase of the white paper is almost complete and it will be published on time," said a top official on condition of anonymity. The white paper will be made public in phases.He said almost all the ministries have already sent the relevant files to the cell after scrutiny and more files are being scrutinised. Besides, necessary documents are also being collected. Another official said some bureaucrats, including junior officials, are voluntarily helping sort out documents. Different divisions, departments and directorates are also sending files on corruption to the cell. Quoting an unnamed senior minister, The Daily Star yesterday reported that some top Awami League leaders, who were ministers, had made huge amounts of money through corruption and that they had left clear evidence of this in files. (Gulf News, January 15, 2002, summary by Sherldine Tomlinson). see www.gulfnews.com

 

6 more corruption cases against 3 ex-ministers. The Bureau of Anti-Corruption of Bangladesh has filed corruption charges against three ministers under the former Awami League government. Ex-Home Minister Mohammed Nasim, who also supervised the Post and Telecommunications Ministry, was sued for alleged irregularities in issuing license to U.S.-based firm WorldTel to install digital telephone lines in Dhaka city. A complaint was lodged against former Minister for Food, Amir Hossain Amu for alleged misappropriation of Tk 20 crore due to procurement of  100,000 tons of rice at a price higher than the market value. Prof Rafigul Islam, ex-State Minister for Power, Energy and Mineral Resources has been complained for alleged misappropriation of Tk 141.65 crore for use in the Meghnaghat Site Preparation Project; Tk 24.96 crore in the 210 MW Siddhirganj Thermal Power Plant unit 1; and Tk 68.60 crore in the Turbine Power Plant at Shahzibazar. These cases are over and above the corruption charges filed by BAC last December 11 against former Prime Minister Sheikh Hasina and some government officials, including former ministers Nasim (Home), Engineer Mosharraf Hossain (Civil Aviation), Abul Hasan Chowdhury (Foreign Affairs), Prof Rafiqul Islam (Power, Energy and Mineral Resources), Saber Hossain Chowdhury (LGRD and Cooperatives), officers Jamaluddin Ahmed (Air chief Air Marshal), General Syed Yusuf Hossain (Comptroller and Auditor), Dr S A Samad (Principal Secretary to the Prime Minister's Office), Brig Gen M A B Siddique Talukder (Executive Chairman of Bangladesh Export Processing Zones Authority), plus more than 40 other senior officials of the immediate past government ( The Independent, January 9, 2002, summary by Eliza Villarino).

MORE POLITICIANS CHARGED. The Anti-Corruption Bureau of Bangladesh has filed more corruption cases against former ministers and leaders of the main opposition Awami League party. This time, three former ministers - Mohammad Nasim, Amir Hossain Amu and Rafiq-ul-Islam were named. They are accused of misuse of power and embezzlement. The Bureau is also investigating the former PM, Sheikh Hasina, many of her former cabinet colleagues and top officials. The Awami League has described the charges as politically motivated. According to Transparency International, corruption is endemic in Bangladesh, which was ranked by TI as the most corrupt country in the world last year. (Source: BBC news, January 8, 2002, summary by Pavlidis George).

 

OMBUDSMAN LAW TO BE IMPLEMENTED    Moudud Ahmed, Law Minister barrister, announced that amendments to the dormant Ombudsman Act of 1980 would be placed in the coming parliamentary session to ensure the transparency and accountability of the current administration.  Ahmed expects the appointment of Ombudsman to be drawn from the ranks of judges of the appellate division; to be based upon integrity, neutrality, acceptability, and reputation; to be acceptable by all political parties; and, in the role of Chief Justice, to scrutinize any irregularities or corruption of a Ministry, a statutory public authority, or a public officer.  (Gulf News, Jan. 7, 2002, summary by Marg Reynolds).

 

TWO CORRUPTION CHARGES FILED AGAINST FORMER PRIME MINISTER . .The promise action against the former government’s involvement in corruption, by the new Prime Minister, Begum Khaleda Zia, came yesterday when two cases of corruption were filed against former Prime Minister, Sheikh Hasina. The first, accusing her of plundering $126m of state funds intended to buy eight MiG aircrafts from Russia in 1998, and the second, for misappropriating upto $3m in the appointment of foreign consultants for an export promotion scheme. The police have mentioned that corruption cases have also been registered against some other ministers of the previous government.(Financial Times, December 12, 2001, summary by Aruna Balakrishnan).

 

INVESTIGATION INTO CORRUPTION CHARGES AGAINST HASINA MINISTERS SOON. Former Prime Minister of Bangladesh, Sheikh Hasina, and several other members of her cabinet are going to be questioned by the Bureau of Anti-Corruption (BAC). The Director General of BAC, Abdul Jabbar, said that there is no political bias in the investigation. After the phase of the investigation, criminal cases will be filed against the accused persons. Among the former ministers who are likely to be sued there is also: Finance Minister Shah AMS Kibria, Food Minister Amir Hossain Amu, Industries Minister Tofail Ahmed, Home and Post and Telecommunication Minister Mohammad Nasim, State Minister for Planning Dr Mahiuddin Khan Alamgir and State Minister for Power, Energy and Mineral Resources Prof Rafiqul Islam. According to the Director General of BAC, the ministers were involved in corruption in different fields, especially in the power sector. (Source: The Independent Bangladesh, November 14, 2001, summary by Pavlidis George).

 

DONORS SET PRIORITY REFORM AGENDA. The donors have set a priority reform agenda for the new government to fulfil on an immediate basis. The conduct of the government can well decide the fate of any future assistance. Separation of judiciary, establishment of the office of an Ombudsman, setting up of an independent anti-corruption commission, complete independence of the Comptroller and Auditor General's office, privatisation of telecom sector are among the necessary measures that have been proposed. The Country Director of the World Bank Frederick T Temple met the new Finance and Planning Minister Mr Saifur Rahman to convey the donors' views. "They (donors) want to help us and we have to implement those reforms for the sake of good governance," told Mr Saifur Rahman. (Source: Daily Star, October 16, 2001, summary by Pavlidis George).

 

THE CHALLENGE AHEAD. At a simple ceremony at the Sangsad Bhaban, 196 members of the 8th parliament took oath, including BNP Chairperson Khaleda Zia. The majority of them (174) belong to the BNP, which led a four-party alliance. Khaleda Zia was unanimously elected as the leader of the BNP Parliamentary Party and she is now due to be sworn in as the new Prime Minister. She told reporters that freeing the society from terrorism and corruption would be her top priority. "People voted us (to fight) against repression, terrorism and corruption in the past five years. We are committed to build a self-reliant country free from terrorism and corruption," she said. (Source: Daily Star, October 10, 2001, summary by Pavlidis George).

 

NEED FOR PROPER ACCOUNT OF ASIAN DEVELOPMENT BANK PROJECTS STRESSED    Initiatives and new approaches in audit requirements, observations, accounting practices and problems, and other related issues were discussed in a recent joint meeting of the Foreign-Aided Projects Audit Directorate, the Asian Development Bank, and the Project Directors within Bangladesh.  Loan disbursement suspensions resulting in disrupted project implementation will result from improper project accounting.  Therefore, identification and resolution of anomalies must be submitted within the stipulated time and according to required ADB loan agreement accounting procedures to ensure transparency, accountability, and prevention of fraud and corruption.    (The Independent, Aug. 1, 2001, summary by Marg Reynolds).

 

CHARGES OF CORRUPTION ABOUND    Sheikh Hasina, Awami League President, stated in response to BNP Chairperson Khaleda Zia’s demand for a white paper on Awami League corruption that the country’s self-sufficiency gains, infrastructure and new industry development progress, and power production increases could not have been gained had Awami League indulged in corruption.  The right to vote in a free and fair election has been provided for the people by the caretaker government established by the Awami League.  Further, Sheikh Hasina state there were 98 corruption cases pending against BNP leaders and alleged that the BNP Chairperson herself has misappropriated the PM’s Relief Fund, took kickbacks from the Airbus purchase, and illegally renovated her cantonment house.    (United News of Bangladesh, Aug. 1, 2001, summary by Marg Reynolds).

 

 STAMP OUT CORRUPTION TO SPEED UP POVERTY ALLEVIATION    The main deterrents to poverty alleviation are widespread corruption and keeping up to 50 percent of the rural poor out of mainstream development activities.  Participants at the recent conference ‘Election 2001: Development Policy Dialogue’ proposed corporatisation of NGOs to enable the beneficiaries to assume ownership and operate transparently.  Issues addressed at the conference included agriculture and rural development, poverty reduction and employment generation, and land administration.  With NGOs becoming more accountable, the widespread corruption of land records could be simplified by computerization; and unequal distribution of resources, education, and health services could be alleviated in part by inclusion of the stakeholders.    (The Daily Star (Bangladesh), July 29, 2001, summary by Marg Reynolds).

 

OFFICIALS – WARNING    Major General (retd) Moinul Hossain, Advisor for Industries, Commerce, and Telecommunications, warned absentee officials at the Bangladesh Telegraph and Telephone Board that irregularities and corruption in the drawing of salaries for government service without attending office cannot be allowed.  He directed sectional and department heads to ensure attendance, proper performance of duties, and customer service standards were met and asked senior officials to set examples.    (United News of Bangladesh, July 26, 2001, summary by Marg Reynolds)

 

IOJ TEAM MEETS PRESIDENT; PLACES 11-POINT DEMAND FOR FREE, FAIR POLL    Islami Oikya Jote Chairman Shaikul Hadis Maulana Azizul Haq presented President Justice Shahabuddin Ahmed with an eleven-point demand during a meeting held yesterday at the Bangabhaban.  Included in the demands are:  publishing of a white paper on repression of Islamic scholars during Awami rule; army deployment having magistracy power at polling centers; enquiry into corruption by Ministers, MPs and leaders of the Awami League; removal of DCs and SPs that are Awami League supported; cancellation of ‘anti-state’ agreements; withdrawal of cases and release of all Islamic scholars; repeal of Special Security Act providing security and facilities to Sheikh Hasina and her sister, Sheikh Rehana; correction of voter list; proportionate radio and television publicity to all parties; curb influence of black money and terrorism; and not to allow illegal pressure on the caretaker government by the Awami League.  The President Justice sought cooperation and patience from all parties.    (The Independent, July 25, 2001, summary by Marg Reynolds)

 

KHALEDA REITERATES CALL TO WEED OUT CONTROVERSIAL MEN    Begum Khaleda Zia, BNP Chairperson, has demanded the National Executive Committee remove controversial persons and close relations to partymen in key positions in order to conduct free and fair elections.  She labeled Awami League’s regime as five years of misrule, corruption, killings, harassment, violence, and oppression against the people and that this administration and the police sought to undermine the caretaker government.  She also called for recovery of both illegal and licensed arms from Awami League cadres; the arrest of those on a fresh list of Awami League terrorists; the inclusion of genuine and exclusion of false voters on the voter’s list; and the caretaker government to ensure all party leaders were allowed to work freely for the ensuing elections.    (The Independent, July 25, 2001, summary by Marg Reynolds)

 

STUDY REVEALS PLUNDERING OF FOREIGN AID    Dr. Abul Barkat, General Secretary of the Bangladesh Economic Society, recently announced release of his research study entitled: ‘Political Economy of Bangladesh’ in which he notes the amount of international donor aid that has been received in the last thirty years and the amount of aid that has been required during that period.  The total amount of official aid received since Bangladesh emerged in 1971 from donor countries and agencies was Taka 1,800 billion.  Dr. Barkat gives a detailed compilation of the 75 percent of these funds that were misappropriated or plundered, and that left the poor and working class people, the intended recipients, only 25 percent of the total.  He further believes that the terms and conditions of loan agreements are opposed to national interests, but rather upholding to donor interests and agendas.  The study tabulates costs of foreign consultant appointments and project implementation, but was not able to tabulate how much human development or how much deprivation of the poor and destitute has been checked, because not all non-government organizations target development of the people and because there was no specific account at the government’s disposal.  The fate of the deprived section of people remains as at thirty years ago.(Dainik Janakantha, July 21, 2001, summary by Marg Reynolds)

 

PM HASINA SAYS GOVERNMENT HAS TRIED HARD TO ROOT OUT TERRORISM, CORRUPTION    Sheikh Hasina, Prime Minister, stated the 20 years of misrule, corruption, and terrorism that followed the 1975 assassination of the Father of the Nation was not fully possible to overcome by her government in the past five years because of corruption’s deep roots in society.  She claimed no law can bring the rich to book when they are protected by the state; that Transparency International said nothing of corruption when it was an open secret, but reported it after the Awami League government started cleaning it up; that the transfer of power after the term expiry of the Seventh Parliament to the non-party caretaker government will be under constitutional process and the transfer undertaken on the day desired by President Justice Shahabuddin Ahmed; and that the opposition BNP party members were elected by the people to sit in the House, but they never came to the House.    (The Independent, July 14, 2001, summary by Marg Reynolds)

 

GOVERNMENT TO SUE TRANSPARENCY INTERNATIONAL OVER ‘FABRICATED’ REPORT ON CORRUPTION    The government recently declared a Transparency International Bangladesh report listing Bangladesh as the most corrupt country as being fabricated and unfounded and plans to sue TI-B for tarnishing the image of the country.  The government spokesman stated that although corruption is not new, it has not increased; that the government has ensured transparency and accountability and stopped administrative interference of the Bureau of Anti-Corruption; that TI was not objective and did not properly investigate their reporting or consult relevant government agencies; and that investigations have been undertaken into embezzlement allegations of 113 former Presidents, Prime Ministers, and Ministers involving Tk 3009.63 crore, and against former and present MPs involving over Tk 3265 CRORE.  He stated socio-economic achievement progress indicators in agriculture, education, health care and housing had increased, indicating a decrease in corruption.  The government initiative to appoint an Ombudsman was in vain due to main opposition absence in Parliament since 1998.    (The Independent, Dhaka, July 5, 2001, summary by Marg Reynolds)

 

FINANCE MINISTER SHAH AMS KIBRIA TODAY SAID CORRUPTION ENTERED INTO THE POORER COUNTRIES FROM DONOR AGENCIES    Shah AMS Kibria, Finance Minister, stated donor agencies brought corruption to poor countries and Transparency International was a totally politically motivated group of people that established the organization by using this type of vice.  He noted that timing the ‘most corrupt’ rating just before an election harmed the self-esteem and sense of respect of the nation and that spectacular improvement in growth has been due to reforms.  He stated the private sector would be strengthened if total reforms were implemented, such as in Customs Administration modernization and Revenue collection through efficient tax administration reforms.  However, he further noted a vested group was resistant to reform due to their own selfish interests.    (United News of Bangladesh, July 3, 2001, summary by Marg Reynolds)

 

RULING PARTY ‘PLUNDERS’ PUBLIC MONEY FOR ELECTION PURPOSES    The disclosure by Transparency International of Bangladesh as being the most corrupt nation has annoyed the present government as it has been portrayed successfully and truly, and the government title aptly deserved in the opinion of each and every man and woman in the country.  Two examples of the last-minute plundering of the ruling Bangladesh Awami League follow.  Firstly, government directives were issued for 250 projects worth Taka 3 billion for development of school, college, madrassah (Islamic seminary), mosque, temple, and construction and reconstruction of roads and drainages in forty subdistricts, in which more than half belonged to ruling BAL MP members.  The work on the projects, including drawing on allocated funds, together with completion of the construction, was to be executed between June 25 and June 30.  The orders were received from the government on June 27, leaving three days for completion of the work.  The government shortsightedness in squandering public money and its indulgence in corruption with the aim of electioneering, with the majority of the funds going to the pockets of party leaders and workers, is possible only under BAL rule.  Secondly, also with keeping the upcoming general elections in view, allocations of Taka 4.73 billion and 0.364 million tons of food grains were made, with only Taka 730 million and 56,000 tons of food grains worth of work being done.  The declared rules for payment in food-for-work programs and test-relief work are rules that were reversed and not followed as again, ruling party workers and leaders did the plundering.  Government money has been squandered, misappropriated, and misused by the present government and the same fate awaits allocations for the current year’s development programs.    (Dainik Inqilab, July 1, 2001, summary by Marg Reynolds)

 

GOVERNMENT TO SUE TRANSPARENCE INTERNATIONAL BANGLADESH OVER ' FABRICATED' REPORT ON CORRUPTION. Since Transparency International Bangladesh (TIB) rated Bangladesh the most corrupt nation, the government has decided to sue them.  The government believes that the report was not formulated on the basis of facts.  (The Independent(Dhaka), July 5, 2001, summary by Barbara Gray).

COMMITTEE ON ENERGY MINISTRY MAY CHARGE EX-MINISTER WITH CORRUPTION    Captain (Retd) Tajul Islam, MP and head of a subcommittee of the Jatiya Sangsad Standing Committee on the Ministry of Energy, is contemplating corruption charges against Dr. Khondoker Mosharraf Hossam, former Minister of Energy; Q. Golam Mowla, former Chairman of the Power Development Board; Sheik Abdur Rahman, PDB member; Mainul Islam, ex-Chief Enfineer of the Raozan Power Plant; and others.  An advisor appointed to the Energy Ministry detected 400 major faults in the first unit of the Raozan Power Plant, whereupon the Advisor recommended the Ministry address the faults.  The authority instead set up the second unit of the plant, the matter was taken to the Anti-Corruption Bureau, but no investigation was initiated.  The Ministry of Energy and the PDB were not responsible to protect the country’s interests and gained personal benefits to a strongly vested interest group.    (The Independent Bangladesh, June 12, 2001, summary by Marg Reynolds).

 

CORRUPTION COSTS COUNTRY 2.6% OF GDP IN 6 MONTHS SAYS TRANSPARENCY INTERNATIONAL CHAPTER    Transparency International (TIB) released a report stating losses due to corruption include more than Tk5,657 crore during the last six months of Year 2000, together with environmental hazards, physical repression, curbing of human rights, and deterioration of law and order.  In the most corrupt of the sectors, the law enforcement agencies, abuses take the form of plunder, bribery, extortion, and abuse of power.  Losses related to corruption are born 81 percent by the government, although actions were taken in only 31 percent of the cases.  The health sector, water resources, and education followed.  The TI report made several recommendations and stated political will is required for stamping out corruption.    (The Independent, Apr 14, 2001, summary by Marg Reynolds).

 

ANTI-CORRUPTION PROTEST VIOLENCE KILLS TWO    A general strike between supporters and opponents of the government of Sheikl Hasina, Prime Minister, has caused closure of schools and stores in over sixty cities and several deaths due to the riots have been reported.  Hasina and the governing Awami League party have been accused by the opposition of corruption, incompetence, and harassment of political opponents – a charge denied by Hasina, who plans to stay in power until her five-year term ends on July 13.    (Yahoo News (AP), Apr 9, 2001, summary by Marg Reynolds).

 

THE ISSUE OF GOOD GOVERNANCE. In his address at a discussion on "Journalists' Orientation on European Union", the Head of the Delegation of the European Commission to Bangladesh, Mr. Antonio de Souza Menezes, said that good governance was included in the cooperation agreement concluded between Bangladesh and the European Union. According to Mr. Menezes, good governance is now part of the aid package. For many years Bangladesh was under military or quasi-military rule or autocracy, thus, healthy politics could not grow. Fortunately, for the last nine years the country has a democracy. The problem, though, is that little attention has been given to the question of mandatory checks against financial misuse. At a seminar organized by the Bangladesh Economic Association, eminent economists estimated that 75% of donors' money was misused, and almost 30% of the total foreign aid received after corrupt bureaucrats and politicians pocketed liberation. Clearly, there is a need for watchdog-institutions like the office of Ombudsman, parliamentary standing committees and parliament itself with the full force of its operation. (Source: The Independent Bangladesh-editorial, February 14, 2001, summary by Pavlidis George).

Destination of aid. At a seminar organised by the Bangladesh Economic Association, it was revealed that only 25 per cent of the total foreign aid of Taka 180,000 crore reached its target and other parties siphoned off 75 per cent.  Bureaucrats, politicians, commission agents, consultants and contractors removed 30 per cent (Taka 54,000 crore) and 20 per cent was devoured by higher income people in urban and rural areas.  However, 25 per cent (Taka 45,000 crore) was taken back by the donors as payment for the supply of equipment, agents and consultants; these were the conditions for the loan of the World Bank-IMF, effectively a prescription for perpetual dependency of the ‘beneficiary’.  Mostly to blame is the oversized bureaucracy, which grew under past autocracy and continues to thrive even now because transparency and accountability are not yet entrenched governance principles.  (Independent, February 12, 2001, summary by Hema Kotecha).

 

Dacca (Bangladesh) – Bangladeshi politician MK Anwar has observed today that the main source of corruption come from high levels within the political establishment, and that its currently on the increase despite beliefs to the contrary. Mr Anwar made these observations during an anti-corruption discussion organized by Transparency International Bangladesh. (The Independent Bangladesh, Summary by Fabian Camacho, Nov 30,2000).

 

WORLD BANK WARNS ABOUT RISKS OF SUPPLIERS´ CREDIT. Bangladesh should stop accepting suppliers' credit for state-run projects to avoid increasing the country's debt burden to unsustainable levels, warned the World Bank. A World Bank report predicts that if current trends of taking suppliers' credit continues, the debt service ratio could triple in a decade. The report also found that, in general, suppliers' credit extended to public sector agencies was not good value because of a lack of transparency and reliance on single-source contracts instead of competitive bidding. The credit received by Bangladesh for public sector projects jumped to $398 million in the fiscal year to June 2000 from $146.3 million three years ago. (World Bank Development News, 9 November 2000, summary by Debbie Uy).

 

Dacca - The proceedings in a case involving the purchase of two Airbuses for the Bangladeshi national carrier by ex government officials have been postponed until November 22. The present government's anti-corruption bureau is accusing the former premier of using corrupt means in acquiring the aircraft. (Independent Bangladesh, November 7, 2000, Summary by Fabian Camacho).

 

FRAUDULENT RICE IMPORTS DISCLOSED. In November 1998, a ship named MV Hafina with 12,000 metric tons of rice was reported disappeared on its way from  India to Chittagong port. The Ministry on Food had purchased the rice from  an Indian firm, Ramesh Kumar and Co, through an  international tender. The  sub-committee that was formed for the inquiry  investigated the case and  revealed that there was no existence of such company and "no ship named MV  Hafina anywhere in the world". Therefore, the  Parliamentary Standing Committee on Food Ministry recommended yesterday "stern  action" against the  fraudulent suppliers and the ministry's officials  involved. (Source: The Independent, Sept. 25, 2000, summary by Pavlidis George). 

 

Ershad sentenced for corruption (The Hindu, 25.8.00, http://www.the-hindu.com/holnus/03242002.htm)

Headline, 25-AUGUST-2000, Link may not work after a few days.

 

BANGLADESH: FORMER PRIME MINSITER INDICTED FOR CORRUPTION Opposition leader and former Prime Minister Khaleda Zia was formally indicted today on corruption charges, which if proved in a court of law could disqualify her from holding any public office or running for a parliamentary seat. The Bureau of Anti-Corruption filed a criminal case against Begum Zia and two of her former Ministers for allegedly receiving $ 35 million as kickbacks during purchase of two airbuses for the National Airlines. The two aircraft were bought from France during Begum Zia´s tenure in office between 1991-1996. "The charges against me are fabricated to malign my public image as a politician," said Begum Zia, chief of the Bangladesh Nationalist Party. Her lawyers said the Opposition leader would file a legal petition at the High Court soon to quash the charges against her. A team of Bangladeshi anti-corruption officials visited France for investigations and collected documents for the case. The Hindustan Times, September 7, 2000 http://www1.hindustantimes.com

 

The Index of Economic Freedom (by Driscoll-Holmes-Kirkpatrick) for 2001 places Bangladesh in the  “Mostly Unfree” category with a rank of 132 (Ranks range from 1 for Hong Kong to 155 for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed correlation analysis indicates that countries free from economic regulation are less corrupt. After allowing for some exceptions by 20% trimming, the correlation is near 0.9.

 

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